A man spends 80% of his income and saves the rest. what percentage of his expenditure does he save ?a.40b.25c.20d.30
Question
A man spends 80% of his income and saves the rest. What percentage of his expenditure does he save?
Options:
- a. 40
- b. 25
- c. 20
- d. 30
Solution
1. Break Down the Problem
We need to determine what percentage of his expenditure (spending) the man saves if he saves 20% of his income after spending 80% of it.
2. Relevant Concepts
Let:
- = Income
- Expenditure = 80% of Income = -Savings = 20% of Income =
3. Analysis and Detail
To find the percentage of expenditure that corresponds to savings:
- Expenditure is given by:
- Savings is given by:
- We need to calculate :
4. Verify and Summarize
The calculation shows that the savings represent 25% of the expenditure.
Final Answer
The percentage of his expenditure that he saves is 25% (Option b).
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